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Registered number:
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
CONTENTS
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JAMES WALKER & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
Sales were £41,726,000, 7.0% down on the previous year, the decline reflects challenging internal and external conditions and a reduction in new contracts during the financial year.
For the financial year ended 31 March 2025 James Walker & Co Limited (“the Company”) recorded a loss before tax of £970,000 (2024: Profit of £2,474,000). The reduction in profitability was driven primarily by increases in cross company charges associated with the Keystone project, an under-recovery of labour costs due to reduced demand and increased labour costs that were not incorporated into transfer prices. The Company has maintained its investment in working capital associated with stock to mitigate against supply chain challenges and was impacted by inflationary pressure on raw materials and utilities as a consequence of the geo-political impact of the Ukrainian crisis. The company continues to invest in plant, equipment and facilities. The capital investment plan aims to broaden the businesses capabilities, improve efficiency and enhance health, safety and environmental performance.
The following key performance indicators are measured and reviewed on a regular basis and enable the business to set and communicate its performance targets and monitor its performance against these targets:
Revenue growth - annual growth rate of revenue: -7.0% reduction (2024: 6.3%). Operating margin - operating profit as a percentage of revenue: -2.8% loss (2024: +5.1% profit). Average working capital levels - inventory plus trade and other receivables less trade and other payables as a percentage of revenue: 30.1% (2024: 26.4%). Shareholders' funds: £27,319,000 (2024: £27,963,000). During the year the Company spent £2,354,000 on capital expenditure (2024: £3,982,000).
Absenteeism levels were on average 3.1% (2024: 3.1%).
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JAMES WALKER & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
Impact of US tariffs
New, elevated US tariffs were announced on 2 April 2025, creating significant global economic uncertainty and raising the risk of recessionary consequences. We anticipate a relatively limited direct impact from these tariffs and any reciprocal measures. Our exports to and imports from the USA are relatively modest. We anticipate passing on tariff costs to customers, wherever possible. Conversely, decreased global economic activity has the potential to significantly reduce demand for our products and systems. Geopolitical instability We are seeing increased geopolitical instability which may impact supply chains, customer demand or wider operations. The diversified geography and industry of our business is helpful. We also view increased defence spending as an opportunity. Input costs Some of the Company’s input costs, including labour and associated UK social taxes, continue to increase. We aim to mitigate this through operational efficiencies, cost saving initiatives and passing residual cost increases on to customers. PFAS Some of the products the Company supplies include raw materials manufactured using PFAS surfactants. Prohibition or withdrawal of these components would stop the supply of certain products into the marketplace. We have identified materials that are at risk and are researching and have developed alternative solutions for most compounds, working closely with our customers, academia, and suppliers. James Walker now has PFAS surfactant-free alternatives for more than 90% of its elastomer material compounds, these materials have been extensively tested and will be available for customer validation. Climate change A warming, changing climate presents both medium and long-term risks and opportunities for the Company. The transition towards net zero carbon, including policies to encourage decarbonisation, will, in future, require us to provide additional support and products to customers as they shift away from fossil fuel-based supply chain. Customers’ environmental expectations of their supply chains are expected to become more demanding. The Company is responding to the UN SDGs and is developing projects to reduce our carbon intensity through better energy management, more efficient equipment and investment in sustainable energy sources. Project Keystone After some delay we plan to go live on our new enterprise resource planning system in the next 12 months, with minimal business disruption. We aim to achieve this through rigorous project management controls and thorough system testing. Should the risk materialise the supply of key products to our sales entities and customers could be disrupted. Cyber-attack Like many businesses we perceive an increased general threat of cyber-attack. If the Company were to lose critical information or critical systems availability the business would be impacted or could suffer reputational damage. We protect our IT systems from cyber-attack through educating colleagues, process design and utilisation of technology. Considerable focus has been given to this area in recent years. We continue to make investments to enhance our security and holds Cyber Essentials Plus accreditation. Credit Credit risk is managed by monitoring payment performance of counterparties and applying appropriate levels of credit to limit the Company’s exposure. Business interruption: The Company is exposed to business interruption risk, and has in place business continuity plans which are reviewed regularly.
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JAMES WALKER & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The Board places continued and serious emphasis upon its duties towards the full range of stakeholders in the Company. Such duties are conducted in accordance with Section 172, and in a manner to best promote the success of the Company for the benefit of these stakeholders. The Board seeks to conduct the Company’s business to best serve its customers, staff, shareholders and business partners.
We set out below how the Board and directors have had regard to these matters when performing their duties under Section 172. Employees
∙Employment - management of the Company’s activities to ensure it can continue to provide employment
opportunities to current staff and future employees.
∙Health and Safety – detailed Health and Safety data is regularly reviewed, and appropriate actions are taken to prevent future occurrences and to promote a strong culture of safety.
∙Mental health – support and training is provided where appropriate.
∙Engagement – the Company’s parent undertaking, James Walker Group Limited, conducts regular employee surveys with follow-on actions being implemented as appropriate. Additionally, other forms of interaction are maintained, including employee forums, newsletters and broadcasts.
Suppliers
∙Relationships - Managing the business to ensure suppliers are paid in line with agreed terms and to foster long term mutually productive relationships.
Customers
∙Customer Experience - Customer Experience data regularly reviewed with actions for improvement implemented as appropriate.
∙Relationships - Managing the business to ensure continuity and stability of supply of products to customers.
Communities and Environment
∙Employment – management of the business to ensure that it can continue to provide employment opportunities within the communities in which it operates.
∙As a participant in the British Plastics Federation’s Climate Change Agreement, the business is committed to ongoing reductions in its emissions within specified target periods, thereby reducing its overall environmental impact.
Shareholders
Managing the business to ensure it provides income through dividends to its shareholder, whilst operating in a responsible manner, having due regard for other stakeholder groups. Significant Decisions The impact on stakeholders of the most significant decision made during the year was the transfer of manufacturing of certain standard products within the elastomer range to James Walker Group's subsidiary company in India to mitigate declining market share and increase sales, in the cost-competitive field of standard elastomer products, whilst enabling the elastomer manufacturing centre of excellence at Cockermouth to focus on higher value, technically complex products such as custom-designed seals, thus benefitting customers, suppliers, and shareholders.
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JAMES WALKER & CO. LIMITED
STRATEGIC REPORT
FOR THE YEAR ENDED 31 MARCH 2025
ENVIRONMENTAL REPORTING
Large UK companies are required to report their UK levels of greenhouse gas (“GHG”) emissions in their annual report and accounts. This obligation is for Scope 1 (direct) and Scope 2 (indirect) emissions, only to the extent that emissions are the responsibility of the Company. Direct emissions originate from combustion of natural gas and transportation, whilst indirect emissions are based on purchased electricity. Emissions are calculated following the UK Government GHG Conversion Factors for Company Reporting 2019 and the UK Government Environmental Reporting Guidelines. An intensity ratio of carbon dioxide equivalent (“CO2e”) per £1m revenue has been selected which will allow a comparison of performance over time and with other similar types of businesses. James Walker & Co Ltd gross emissions remained flat on last year (2024 4.3% decline), whilst sales decreased by 7% (2024: 6.3% increase). The Company remains committed to reducing the impact that manufacturing processes have on the environment and in FY25 and is actively developing carbon and waste reduction plans. JW&Co Gross Emissions
This report was approved by the Board of Directors on and signed on its behalf.
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JAMES WALKER & CO. LIMITED
DIRECTORS' REPORT
FOR THE YEAR ENDED 31 MARCH 2025
The directors present their report and the financial statements for the year ended 31 March 2025.
The directors are responsible for preparing the Strategic report, the Directors' report and the financial statements in accordance with applicable law and regulations.
In preparing these financial statements, the Directors are required to:
∙select suitable accounting policies for the Company's financial statements and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Company's transactions and disclose with reasonable accuracy at any time the financial position of the Company and to enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The loss for the year, after taxation, amounted to £634,000 (2024: profit of £1,444,000).
The directors do not recommend the payment of a dividend (2024: £nil).
The directors who served during the year were:
The directors are confident that the Company can continue as a going concern. The Board feels that the Company is in a sound financial position to maximise any opportunities throughout the year as it actively seeks to expand through organic growth.
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JAMES WALKER & CO. LIMITED
DIRECTORS' REPORT (CONTINUED)
FOR THE YEAR ENDED 31 MARCH 2025
To ensure the Company keeps pace with the demanding changes in industry, its engineers and technologists have placed emphasis upon the need for research and development into materials and products.
Effective communication with employees is of vital importance and the Company has established procedures to provide information to, and consult with, employees and union representatives on financial and other matters that affect them.
On 18 November 2024, the Company’s auditors changed their name from Haysmacintyre LLP to HaysMac LLP.
Pursuant to Section 487 of the Companies Act 2006, the auditor will be deemed to be reappointed and HaysMac LLP will therefore continue in office.
This report was approved by the Board of Directors and signed on its behalf.
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JAMES WALKER & CO. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED
We have audited the financial statements of James Walker & Co. Limited (the 'Company') for the year ended 31 March 2025, which comprise the Statement of comprehensive income, the Statement of financial position, the Statement of changes in equity and the related notes, including a summary of significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK)) and applicable law. Our responsibilities under those standards are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We are independent of the Company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the United Kingdom, including the Financial Reporting Council's Ethical Standard and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
In auditing the financial statements, we have concluded that the Directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of this report.
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JAMES WALKER & CO. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED (CONTINUED)
The other information comprises the information included in the Annual Report other than the financial statements and our Auditors' report thereon. The Directors are responsible for the other information contained within the Annual Report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Company and its environment obtained in the course of the audit, we have not identified material misstatements in the Strategic report or the Directors' report.
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JAMES WALKER & CO. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED (CONTINUED)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an Auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our responsibilities, outlined above, to detect material misstatements in respect of irregularities, including fraud. The extent to which our procedures are capable of detecting irregularities, including fraud is detailed below:
Explanation as to what extent the audit was considered capable of detecting irregularities, including fraud. Based on our understanding of the Company and industry, we identified that the principal risks of non-compliance with laws and regulations related to regulatory requirements for the manufacturing businesses such as health and safety and trade regulations, and we considered the extent to which non-compliance might have a material effect on the financial statements. We also considered those laws and regulations that have a direct impact on the preparation of the financial statements such as the Companies Act 2006, income tax, payroll tax and sales tax. We evaluated management's incentives and opportunities for fraudulent manipulation of the financial statements (including the risk of override of controls), and determined that the principal risks were related to posting inappropriate journal entries to revenue and management bias in accounting estimates. Audit procedures performed by the engagement team included:
∙Inspecting correspondence with regulators and tax authorities;
∙Discussion with management including consideration of known or suspected instances of non-compliance with laws and regulations and fraud;
∙Evaluating management’s controls designed to prevent and detect irregularities;
∙Identifying and testing journals, in particular journal entries posted with unusual account combinations, postings by unusal users or within unusal descriptions; and
∙Challenging assumptions and judgements made by management in their critical accounting estimates.
Because of the inherent limitations of an audit, there is a risk that we will not detect all irregularities, including those leading to a material misstatement in the financial statements or non-compliance with regulation. This risk increases the more that compliance with a law or regulation is removed from the events and transactions reflected in the financial statements, as we will be less likely to become aware of instances of non-compliance. The risk is also greater regarding irregularities occurring due to fraud rather than error, as fraud involves intentional concealment, forgery, collusion, omission or misrepresentation.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our Auditors' report.
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JAMES WALKER & CO. LIMITED
INDEPENDENT AUDITORS' REPORT TO THE MEMBERS OF JAMES WALKER & CO. LIMITED (CONTINUED)
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an Auditors' report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Statutory Auditors
10 Queen Street Place
EC4R 1AG
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JAMES WALKER & CO. LIMITED
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
REGISTERED NUMBER: 02432592
STATEMENT OF FINANCIAL POSITION
AS AT 31 MARCH 2025
The financial statements were approved and authorised for issue by the Board of Directors and were signed on its behalf by:
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JAMES WALKER & CO. LIMITED
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies
James Walker & Co. Limited is a private company, limited by shares, registered in England and Wales.
The registered office is: Lion House Oriental Road Woking Surrey England GU22 8AP The principal place of business is: Gote Brow Cockermouth Cumbria CA13 0NH
The financial statements have been prepared under the historical cost convention unless otherwise specified within these accounting policies and in accordance with Financial Reporting Standard 102, the Financial Reporting Standard applicable in the United Kingdom and the Republic of Ireland, and the Companies Act 2006.
The preparation of financial statements in compliance with FRS 102 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in applying the Company's accounting policies (see note 2).
The following principal accounting policies have been applied:
The Company has taken advantage of the following disclosure exemptions in preparing these financial statements, as permitted by the FRS 102 "The Financial Reporting Standard applicable in the UK and Republic of Ireland":
∙the requirements of Section 7 Statement of Cash Flows;
∙the requirements of Section 3 Financial Statement Presentation paragraph 3.17(d);
∙the requirements of Section 11 Financial Instruments paragraphs 11.42, 11.44 to 11.45, 11.47, 11.48(a)(iii), 11.48(a)(iv), 11.48(b) and 11.48(c);
∙the requirements of Section 12 Other Financial Instruments paragraphs 12.26 to 12.27, 12.29(a), 12.29(b) and 12.29A;
∙the requirements of Section 26 Share-based Payment paragraphs 26.18(b), 26.19 to 26.21 and 26.23;
∙the requirements of Section 33 Related Party Disclosures paragraph 33.7.
This information is included in the consolidated financial statements of James Walker Group Limited as at 31 March 2025 and these financial statements may be obtained from Companies House.
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies (continued)
After reviewing the Company’s forecasts and projections, the Directors have a reasonable expectation that the Company has adequate resources to continue in operational existence for the foreseeable future. The Company therefore continues to adopt the going concern basis in preparing its financial statements.
The Company adds to the carrying amount of an item of fixed assets the cost of replacing part of such an item when that cost is incurred, if the replacement part is expected to provide incremental future benefits to the Company. The carrying amount of the replaced part is derecognised. Repairs and maintenance are charged to profit or loss during the period in which they are incurred.
Depreciation is charged so as to allocate the cost of assets less their residual value over their estimated useful lives.
Depreciation is provided as follows:
The assets' residual values, useful lives and depreciation methods are reviewed, and adjusted prospectively if appropriate, or if there is an indication of a significant change since the last reporting date.
Gains and losses on disposals are determined by comparing the proceeds with the carrying amount and are recognised in profit or loss.
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies (continued)
At each reporting date, stocks are assessed for impairment. If stock is impaired, the carrying amount is reduced to its selling price less costs to complete and sell. The impairment loss is recognised immediately in the Income Statement. Grants of a revenue nature are recognised in the Statement of Comprehensive Income in the same period as the related expenditure. Deferred grant income relates to government grants in respect of the Company's installation of flood defences at the Cockermouth facility. The balance will be recognised in the Statement of Comprehensive Income at the same rate as depreciation of the assets to which the grant relates.
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies (continued)
Functional and presentation currency
Transactions and balances
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
1.Accounting policies (continued)
On an ongoing basis, the Company evaluates its estimates using historical experience, consultation with experts and other methods considered reasonable in the particular circumstances. Actual results may differ significantly from the estimates, the effect of which is recognised in the period in which the facts that give rise to the revision become known. The following paragraphs detail the estimates and judgements the Company believes to have the most significant impact on the annual results under FRS 102.
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
2.JUDGMENTS IN APPLYING ACCOUNTING POLICIES (continued)
The estimated useful economic lives of PPE are based on management's judgement and experience. When management identifies that actual useful economic lives differ materially from the estimates used to calculate depreciation, that charge is adjusted prospectively. Due to the significance of PPE investment to the Company, variations between actual and estimated useful economic lives could impact operating results both positively and negatively, although historically few changes to estimated useful economic lives have been required. The Company is required to evaluate the carrying values of PPE for impairment whenever circumstances indicate, in management's judgement, that the carrying value of such assets may not be recoverable. An impairment review requires management to make subjective judgements concerning the cash flows, growth rates and discount rates of the cash generating units under review. Stock Valuation The Company includes within the value of WIP a percentage of overheads judged by management to be incurred in direct relation to its manufacturing activities. The overhead absorption rate is a fixed percentage of labour costs and general overheads that is applied consistently year-on-year, subject to annual review for reasonableness by management. At each financial year-end, the Company recognises an impairment against stock. The provision recognised includes a fixed percentage of each stock-line based on its ageing.
All turnover is attributable to the principal activity of the Company, the manufacture and sale of sealing products.
Analysis of turnover by country of destination:
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
10.Taxation (continued)
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
Profit and loss account
The profit and loss account includes all current and prior period retained profits and losses.
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JAMES WALKER & CO. LIMITED
NOTES TO THE FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 MARCH 2025
The Company participates in two group defined benefit plans, the James Walker Pension Scheme ("JWPS") and the James Walker Group Senior Executives’ Managed Pension Plan (“SEMPP”). For the purposes of FRS102 s28 the Company cannot identify its share of the underlying assets & liabilities of the defined benefit schemes in which it participates and the Company's pension contributions are assessed in accordance with the advice of a qualified independent actuary whose calculations are based upon total scheme membership. There is no contractual agreement or stated policy for charging the cost of the plan to the individual companies. In overall terms at 31 March 2025 there was a nil deficit in respect of the SEMPP and a deficit of £1,054k in respect of the JWPS. The JWPS and SEMPP were closed to future accrual with effect from 30 April 2016 and active members of the schemes at that date were auto-enrolled into the James Walker Group Personal Pension Plan, a defined contribution scheme. Further information is included in the financial statements of the parent undertaking.
At 31 March 2025 the Company was party to a multilateral guarantee in respect of the indebtedness of other group companies to the value of £2,000,000 (2024: £2,000,000).
The ultimate parent undertaking is James Walker Group Limited. Its registered office is Lion House, Oriental Road, Woking, Surrey, GU22 8AP.
Group financial statements for James Walker Group Limited are available to the public from Companies House, Crown Way, Cardiff, for which there may be a fee, if applicable.
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